This is the percentage that a stocks
price is currently above or below our fair value estimate.

% Assets in Top 10
Holdings (funds only)

Percent assets in top 10 holdings
is the aggregate assets, expressed as a percentage,
of the funds top 10 portfolio holdings. This
figure is meant to show how concentrated a fund is
in its top holdings. A concentrated fund is more susceptible
to market fluctuations in its top holdings and can
be more volatile than its peers.

% Below 52-Week High

This data point reflects the percentage
a stocks current price is below its high over
the past 52 weeks. A negative number means the stock
is currently above its 52-week high.

5-Year Expected Return (S)

The 5-year expected return is the average annual return we expect for a stock over the next 5 years. This calculation assumes that a stock's price converges to its fair value in five years. Thus, if today's stock price is $25 and we expect its fair value to be $50 in 5 years, then the stock will have to appreciate 14.9% per year for 5 years to get to its fair value.

5-Year Risk-Adjusted Return (S)

The 5-year risk-adjusted return measures the return we think a stock will produce over the next five years beyond what's expected given its risk. This is calculated by taking the 5-year expected return and subtracting the hurdle rate. A positive risk-adjusted return is free money--you're receiving an extra return without paying for it with additional risk. In other words, the stock is being mispriced by the market.

52-Week High ($)

The highest stock price over the
trailing 52-week period. (Intraday prices are used
for the current trading day, and closing prices for
the previous 52-week period.)

52-Week Low ($)

The lowest stock price over the
trailing 52-week period. (Intraday prices are used
for the current trading day, and closing prices for
the previous 52-week period.)

Analysis Report Date

This is the last date on which a
Morningstar analyst published his or her report on
the holding. Analyst Reports are a Premium Membership
benefit.

Analyst Pick / Pan
(funds only)

This data point indicates whether
a fund is designated as a favorite (Fund Analyst Pick)
or a least-favorite (Fund Analyst Pan) of Morningstars
in-house analyst staff. Only a handful of funds in
each investment category are designated Analyst Picks
or Pans. Picks and pans are an excellent way to quickly
look for quality funds to consider buying and poor
ones to avoid.

Annual
Return

Time Periods: Last five calendar
years.

Represents shareholders gains
during the stated calendar year. Total return includes
both unrealized capital gains and losses (the increase
or decrease in share price) and any dividend distributions.
It is calculated by taking the change in the stocks
price, reinvesting all dividends, dividing by the
initial price, and expressing the result as a percentage.

Annual
Return +/- Category/ Industry

Time Periods: Last five calendar years.

Morningstar compares a stock or funds total
return with that of the average of other stocks or
funds in its peer group. A positive difference indicates
the stock or fund outperformed its average peer by
the indicated percentage, whereas a negative difference
indicates the stock or fund underperformed its average
peer by the indicated percentage.

Annual
Return % Rank Cat / Industry

Time Periods: Last five calendar years.

This figure represents the percentile rank the stocks/funds
return would have in its industry/category during
the designated time frame. Returns are ranked from
highest to lowest, with the best return having a
1% ranking and the worst a 100% ranking. These relative
figures are a good way to locate stocks that out-
or underperformed their peers during a certain time
period.

Average Daily Volume
(stocks only)

This shows a stocks average
daily trading volume. Note that when comparing the
current days trading volume to this average,
the average reflects a full day of trading whereas
the intraday figure will reflect only trading for the
part of the day that has passed.

Average Market Capitalization
(mil$)

The average market capitalization
of a funds equity portfolio measures the size
of the companies in which it invests. (Market capitalization
is calculated by multiplying the number of a companys
shares outstanding by its price per share.) Morningstar
calculates this figure by taking the geometric mean
of the market capitalizations of the stocks a fund
owns.

Average Star Rating
of Funds Owning (stocks only)

The average star rating of funds owning a stock is the average Morningstar star rating of the mutual funds that have reported owning shares of the company. It is calculated using each funds star rating and is weighted according to the amount of the stock it owns. A funds weighting is equal to the dollar value the fund has invested in the stock divided by the total dollar value that all funds have invested in the stock. The average fund rating for a stock is calculated by summing, across all funds that hold it, each funds star rating multiplied by its weighting.

(Cash  Long-Term
Debt)/Market Cap (%) (stocks only)

(Cash  long-term debt)/market
cap is normally used as an extreme value measure to
determine whether there is enough cash to retire all
of the companys long-term debt. The number is
expressed as a percentage so that one can see how much
extra cash is left, or how much of a shortfall there
is. Note that most companies have more long-term debt
than cash, so this number will normally be negative.
Companies for which this number is the least negativeor
ideally positivemay be interesting value plays.

Consider Buying Price (S)

Consider Buying is the price below which we think investors should consider purchasing a stock, and is equivalent to the price at which it would earn a 5-star rating. Be sure to take your individual circumstances-including diversification, risk tolerance, and tax considerations-into account before making a final purchase decision.

Consider Selling Price (S)

Consider Selling is the price above which we think investors should consider selling a stock, and is equivalent to the price at which it would earn a 1-star rating. Again, be sure to take your individual circumstances into account before making a final decision to sell a stock.

Cost Per Share ($)

Cost per share is the average amount you paid per share for this security. It is calculated by dividing the total cost of your investment (total purchases) by the number of shares held. For transaction portfolios, sales are subtracted and the cost per share is calculated using the balance of your remaining total costs and remaining number of shares held.
Multiple purchases and share splits are accounted for, and commissions are added to costs. Because reinvested dividends are not "money out of your pocket", they are not added to the total cost, but rather as part of your return. This means that as you reinvest your dividends, you'll have more shares vs. your cost, and your cost per share will decline.

Note: Cost per share displayed in Portfolio Manager is not the cost basis. The cost per share is simply to track the total amount of money you invested in your positions, and your average investment per share. Gain/Loss View in Portfolio Manager displays these costs and returns.

Credit Quality

For individual bond holdings, credit quality is the rating a bond carries by one of the rating agencies. This data point is provided by the user.

For mutual funds (and other managed-investment products), average credit quality gives a snapshot of the portfolios overall credit quality. It is an average of each bonds credit rating, adjusted for its relative weighting in the portfolio. U.S. government bonds carry the highest credit rating, while bonds issued by speculative or bankrupt companies usually carry the lowest credit ratings. Anything at or below BB is considered a high-yield, or "junk", bond. For the purposes of Morningstar's calculations, U.S. government securities are considered AAA bonds, nonrated municipal bonds generally are classified as BBB, and other nonrated bonds generally are considered B.

Current Market Value
($)

Market value is the current value
of a given holding, in dollars. It is calculated by
multiplying the price per share by the total number
of shares.

Current Price ($)

This is the most recently reported
market price for a stock or mutual fund. Stock quotes
are delayed 20 minutes. For mutual funds, current price
is the NAV (net asset value) of the fund as of market
close on the previous trading day.

Daily Volume (stocks
only)

This data point a stocks intraday
trading volume in millions of shares.

Date of Most Recent
Portfolio (funds only)

The date of the most recent portfolio
refers to the date of the last portfolio Morningstar
has received for the fund. Although Morningstar tries
to ensure that the portfolio is timely, we do not always
receive current portfolio information from fund companies.
Older portfolios should not necessarily be disregarded;
although they may not represent data from current holdings
of the fund, they often still provide a good picture
of the overall nature of the funds management
style.

Day Change ($)

This is the Price Change ($) multiplied
by the number of shares.

Dividend Growth Past
5 Years (%) (stocks only)

Five-year dividend growth measures
the annualized growth of a companys dividends
over the indicated time period. Note that the calculation
uses dividends paid out during the most recent trailing
12 months as compared with those paid out during the
trailing 12 months six years ago. Increasing dividends
are usually a signal that management has confidence
in the companys continued earnings power. Dividend
growthespecially growth that has been steady
from year to yearis a good sign for those investing
for income.

Dividend Yield (%)Trailing
12 Months

Dividend yield is calculated by
dividing total dividends by the current price and multiplying
by 100. Note that the total dividends used in the calculation
are for the 12 months ending as of the last month-end.

Duration

Dividend Yield / Bond Coupon (%) - Trailing 12 Months

Earnings
per Share $ (stocks only)

Time Periods: Trailing 12 Months, Fiscal Year 1

Earnings per share is calculated by dividing net
income by an average of the total shares outstanding
for the year. This figure is a useful snapshot of
how much a company earned in a given year, but it
should always be looked at in the context of EPS
figures for previous years. Note that per-share numbers
are more useful than raw net income for cases where
a company has issued a lot of new shares.

Earnings
per Share Growth (%)

Time Periods: 1 Year, 3 Year

Earnings per share growth represents the compounded
or annualized growth rate in a companys earnings
per share. The one-year growth rate is calculated
from the end of the second fiscal year (FY2) through
the most recently completed fiscal year (FY1); the
three-year growth rate is calculated from the end
of the fourth fiscal year (FY4) through the most
recently completed fiscal year (FY1). Note that because
its expressed on a per-share basis, growth
in earnings per share takes into account dilution
from new share issuances.

Economic Moat (stocks
only)

The idea of an economic moat refers to how likely
a company is to keep competitors at bay for an extended
period of time. One of the keys to finding superior
long-term investments is buying companies that will
be able to stay one step ahead of their competitors.
The economic moat rating is meant to capture this
characteristicthink of it as the strength and
sustainability of a firms competitive advantage.

One of the first factors we consider when determining
the size of a firms economic moat is the companys
historical financial performance. Companies that
have generated returns on capital higher than their
cost of capital for many years running usually have
a moat, especially if their returns on capital have
been rising or are fairly stable.

Of course, the past is often not a predictor of
the future, so we look carefully at the source of
a companys excess economic profits before assigning
a moat rating. For example, a competitive advantage
created by a hot new technology usually isnt
very sustainable, because it wont be too long
until someone invents a better widget.

Here are some of the attributes that can give companies
economic moats:

 Huge Market Share: When a firm enjoys economies
of scale in areas such as manufacturing, sales, and
marketing, it can be pretty tough for a competitor
to catch up.

 Low-Cost Producer: The ability to produce
products or services at a lower cost than competitors
is an especially potent advantage in commodity industries.

 Patents, Copyrights, or Governmental Approvals
and Licenses: Some companies generate enormous profits
when the government artificially protects their products
or markets.

 Unique Corporate Culture: Although you should
be careful about placing too much emphasis on this
attribute, since its such a soft method
of determining competitive advantage, theres
no question corporate culture can make a difference.

High Customer-Switching Costs: If a firm
can make it tough for its customers to use a competitor,
its usually easy to keep ratcheting prices
up just a bit year after yearwhich can lead
to big profits.

 The Network Effect: This is a relatively
rare, but potentially quite potent, source of competitive
advantage, and often applies to the first mover in
an emerging technology. Since a networks value
increases as more people use it, the company that
creates the network can create a massive economic
moat.

Effective Maturity (B)

Average effective maturity is a weighted average of all the effective maturities of the bonds in a portfolio. Effective maturity takes into consideration mortgage prepayments, puts, calls, adjustable coupons, and other features of individual bonds and is thus a more accurate measure of interest-rate sensitivity than nominal maturity. Longer-maturity funds are generally considered more interest-rate sensitive than their shorter counterparts.

EPS
from Continuing Ops (stocks only)

Time Periods: Trailing 12 Months, Fiscal Year 1

Earnings per share from continuing operations is
a companys earnings per share from the day-to-day
operations of its business. It does not include earnings
from discontinued operations, extraordinary items,
or accounting changes. EPS from continuing operations
tends to be much more consistent and representative
of a companys true performance than final EPS,
which is subject to manipulation by accounting rules.

Equity
per Share Growth (%)

Time Periods: 1 Year, 3 Year

Equity per share growth is the compounded or annualized
growth rate per share in a companys shareholders equity,
or book value. Equity is a companys total assets
minus its total liabilitiesin other words,
whats left over for shareholders. Equity growth
per share shows how quickly shareholders stake
in the company is growing. Thus, growth in equity
per share is one of the key variables in determining
if a company is increasing shareholder wealth over
time. Note, too, that because its expressed
on a per-share basis, equity growth per share takes
into account dilution from new-share issuances.

Equity Style Box

The Morningstar style box is a nine-square grid
that provides a graphical representation of the investment
style of stocks and mutual funds. For stocks
and stock funds, it classifies securities according
to market capitalization (the vertical axis) and
growth and value factors (the horizontal axis).

By providing an easy-to-understand visual representation
of stock and fund characteristics, the Morningstar
style box allows for informed comparisons and portfolio
construction based on actual holdings, as opposed
to assumptions based on a funds name or how
it is marketed. The style box also forms the basis
for Morningstars style-based fund categories
and market indexes.

How It Works:

The vertical axis of the style box defines three
size categories, or capitalization bandssmall,
mid-size, and large. The horizontal axis defines
three style categories. Two of these categories, value and growth, are
common to both stocks and funds. However, for stocks,
the central column of the style box represents the
core style (those stocks for which neither value
nor growth characteristics dominate); for funds,
it represents the blend style (a mixture of growth
and value stocks or mostly core stocks).

In general, a growth-oriented fund will hold the
stocks of companies the portfolio manager believes
will increase earnings faster than the rest of the
market. A value-oriented fund contains mostly stocks
the manager thinks are currently undervalued in price
and will eventually see their worth recognized by
the market. A blend fund might be a mix of growth
stocks and value stocks, or it may contain stocks
that exhibit both characteristics.

Style box assignments begin at the individual stock
level. Morningstar determines the investment style
of each individual stock in its database. The style
attributes of individual stocks are then used to
determine the style classification of stock mutual
funds.

Expense Ratio (funds
only)

The annual expense ratio, taken
from the funds annual report, expresses the percentage
of assets deducted in the last fiscal year for fund
expenses. This figure includes 12b-1 fees, management
fees, administrative fees, operating costs, and all
other asset-based costs incurred by the fund. Portfolio
transaction fees, or brokerage costs, as well as initial
or deferred sales charges are not included in the expense
ratio. The expense ratio, which is deducted from the
funds average net assets, is accrued on a daily
basis. If the funds assets are small, its expense
ratio can be quite high because the fund must meet
its expenses from a restricted asset base. Conversely,
as the net assets of the fund grow, the expense percentage
should ideally diminish as expenses are spread across
the wider base. Funds may opt to waive all or a portion
of the expenses that make up their overall expense
ratio.

Financial Health Grade
(stocks only)

To get a high financial health grade,
a company should have low financial leverage (assets/equity),
high cash-flow coverage (total cash flow/long-term
debt), and a large cash position (cash/assets). Also,
companies with improving financial health are rewarded,
while those with deteriorating health are penalized.

Fiscal Year End (stocks
only)

This is the end date of a companys
accounting year. Annual reports and annual financials
are prepared and published based on this date. A companys
fiscal year doesnt usually correspond to the
calendar year.

Fixed-Income Style
Box (funds only)

Domestic and international fixed-income
funds focus on the two pillars of fixed-income performance:
interest-rate sensitivity and credit quality. Morningstar
splits fixed-income funds into three groups of interest-rate
sensitivity (high, medium, and low) and three credit-quality
groups (high, medium, and low). These groupings graphically
display a portfolios average effective duration
and credit quality. As with equity funds, nine possible
combinations exist, ranging from short maturity/high
quality for the safest funds to long maturity/low quality
for the riskiest.

Free Cash Flow/Market
Cap (%) (stocks only)

Free cash flow/market cap is a measure of stock valuation. In contrast to many valuation measures, a lower free cash flow/market cap means the company is more richly valued by the market. One major advantage of this measure is that free cash flow is a better measure of a company¡¯s earning power than actual earnings, as it more accurately takes into account things like investments in plants and equipment that are necessary for the ongoing business.

Fund Family Score
(funds only)

Morningstars Fund Family Score was designed
to give investors a measure of how well a firm has
done as a whole in each of four possible asset classes.

We aggregate the star ratings earned by each of
the familys funds within the domestic stock,
foreign stock, municipal bond, and taxable bond asset
classes. The score is an asset-weighted average of
a firms star ratings within those four classes.
We use each funds asset level from three years
ago in order to reflect investors actual recent
experience at the firm.

The score is intended to be a check on the quality
of a firms management in each asset class.
A score of 2 or lower indicates that a firm has performed
poorly in that asset class. This may signal the firm
has structural problems such as weak research or
high costs. Thus, a low fund family score indicates
you should be wary of a fund even if the fund itself
has a high rating.

The score is not intended to serve as a ranking
among fund families. The law of averages dictates
that a firm with a lot of funds in an asset class
is more likely to have a fund family score near the
average (3). Conversely, a smaller firm is more likely
to have a score near the low or high end because
only a few funds are being measured. If you want
to compare fund family scores, be sure to do it using
firms that offer a similar number of funds.

Fund Manager Tenure
(funds only)

Fund manager tenure reflects the
number of years that the current manager has been at
the helm of the fund. For funds with more than one
manager, the average tenure is shown. If the fund company
designates the manager as management team and
does not disclose the names of the managers to Morningstar,
manager tenure appears as a dash for the fund.

Fund Size (Total Assets
in $MM) (funds only)

The net asset figures are based on month-end net assets of all share classes of the mutual fund, recorded in millions of dollars. Net-asset figures are useful in gauging a fund’s size, agility, and popularity. They help determine whether a small company fund, for example, can remain in its investment-objective category if its asset base reaches an ungainly size.
Benefits: This information can be useful in gauging a funds mass and agility.
Origin: Morningstar lists the month-end assets, as they have been reported by the fund.
Example: It is important to keep in mind that the size of the fund as measured by net assets has little or no correlation to the size of the companies in which the fund invests. For example, a fund has over $2 billion in net assets, with an average market cap of $863 million. In other words, this is a very large fund that invests primarily in equity securities of small companies with market capitalizations less than $1 billion.

G - L

Gain / Loss Since
Purchase ($)

This represents the amount, in
dollars, that you have gained or lost since purchasing
a security. This number is calculated by subtracting
the cost per share from the market value. Note that
commissions are added to costs and thus reduce gains
and increase losses.

Gain / Loss Since
Purchase (%)

This represents the amount, expressed
as a percentage, that you have gained or lost since
purchasing this security. Please note that this figure,
unlike most return figures shown on Morningstar.com,
is not annualized. (If a holding is worth 21% more
now than when you bought it two years ago, the gain
will display as 21%, whereas elsewhere it would display
as an annualized return of 10%.) This number is calculated
by subtracting the cost of the security from the market
value, dividing the result by the cost, and multiplying
by 100.

Growth Grade (stocks
only)

The growth grade shows how a companys
growth compares with that of other stocks in its sector.
It measures not only how fast a companys sales
are growing, but how consistent that growth has been
and whether it is speeding up or slowing down. The
growth grade encapsulates the most important information
about a companys growth into a single rating,
allowing easy comparison between companies.

Holding Transaction
History

Click the image to view past transaction
involving this holding, or to edit the holding's transactions.

The hurdle rate is a quantitative measure of a company's risk--the riskier the stock, the higher its hurdle rate will be. The hurdle rate is the average annual return we need to get from a stock to justify the risk of holding it. We calculate the 5-year risk-adjusted return for any stock by subtracting the hurdle rate from the 5-year expected return.

This hurdle rate has two components: cost of equity and margin of safety. Note that the hurdle rate, for us, is always greater than cost of equity alone because it adds in a margin of safety. We're more demanding than the market about the price we'll pay for a stock.

Industry and Industry
Group (stocks only)

This field indicates your stock
holdings primary area of business. Morningstars
industry classifications are more specific than our
sector divisions.

Initial Purchase Date

This is the date of the earliest
purchase of a holding.

Last Stock Split (stocks
only)

The last stock split is the last
date on which the stock reported a split. A stock split
increases the number of a companys shares outstanding.
Although they have no effect on shareholders percentage
ownership of the company, some investors consider stock
splits to be a bullish sign.

M - R

Maturity Date (B)

This is the date on which a bond will mature. It is only applicable to individual bond holdings as bond funds do not mature.

Mean EPS Estimate
for Next Year (stocks only)

Mean EPS estimate for next year
is the EPS that analysts, on average, expect the company
to generate during the fiscal year following this one.
By looking at analysts consensus estimate of
a companys earnings for the next fiscal year,
and comparing it with earnings forecasts for the current
fiscal year, you can see how much near-term growth
analysts are expecting.

Mean EPS Estimate
for This Year (stocks only)

Mean EPS estimate for this year
is the EPS that analysts, on average, expect the company
to generate during the current fiscal year. By comparing
this figure with the companys EPS from the previous
fiscal year, you can see how much analysts expect the
company to grow its earnings this year.

Morningstar Business
Risk (stocks only)

To generate Morningstar Business Risk, our analysts
score companies on several risk factors:

 How cyclical is the companys industry?

 How wide is the companys economic moat?

 How strong is the companys balance
sheet?

 How does the companys free cash flow
compare with its sales?

 How sustainable is the companys operating
cash flow?

 How big is the company?

 Is there a nonfinancial issue that could
materially affect the companys fortunes?

The scores are summed to produce a composite score,
which is translated into the ratings below average,
average, above average, or speculative.

Morningstar Fair Value
(stocks only)

Fair value is the Morningstar analysts
estimate of what a stock is worth. Our fair value estimate
should be used in conjunction with our economic moat
rating and our business risk rating. In order to determine
fair values for stocks, Morningstar analysts project
five years worth of a companys revenue
growth, profitability, and asset efficiency. The analysts
then enter these projections into a discounted cash-flow
(DCF) model, which calculates a fair value based on
the resulting cash flows.

Morningstar Rating
for Funds

Morningstar rates mutual funds
from 1 to 5 stars based on how well theyve performed
(after adjusting for risk and accounting for sales
charges) in comparison to similar funds. Within each
Morningstar category, the top 10% of funds receive
5 stars and the bottom 10% receive 1 star. Funds are
rated for up to three time periodsthree, five,
and 10 years, and these ratings are combined to produce
an overall rating. Funds with less than three years
of history are not rated. Ratings are objective, based
entirely on a mathematical evaluation of past performance.
Theyre a useful tool for identifying funds worthy
of further research, but they shouldnt be considered
buy or sell signals.

Morningstar Rating
for Stocks

The stock star rating is calculated by comparing
a stocks current market price with Morningstars
assessment of the stocks fair value. A stocks
risk and economic moat are also considered. Thus,
a stock with a lower risk score and a wider economic
moat is likely to receive a higher star rating than
a stock with a higher risk score and a smaller economic
moat, given an equal discount (or premium) to fair
value. Star ratings for stocks range from 1 (lowest)
to 5 (highest).

Morningstar rates only stocks that our analysts
have under full coverage. Ratings are updated using
each days closing stock price and can therefore
change daily. They can change because of a move in
the stocks price or a change in the analysts
estimate of the stocks fair value, risk rating,
or economic moat ratingor any combination thereof.
If the price of a stock our analysts cover falls
significantly below $5, we generally will not rate
the stock, because the low price will make the star
rating too volatile to be meaningful.

Under Review
We may place a stocks rating temporarily under review if
a company releases significant news after the markets close, and
we need time to review our estimate of fair value. You can expect stocks
that are under review to have a new Analyst Report and fair
value estimate within a few days.

Pending
When we publish a new analysis during the trading
day, the star rating and market price will display pending until
after that days market close. We do this to obtain a stable reference
price on which to base the star rating, which means waiting for a closing
price to become available.

Morningstar Return (funds only)

Morningstar return is an assessment of the fund's excess return over a risk-free rate (the return of the 90-day Treasury bill) in comparison to similar funds, with an emphasis on downward variation. Therefore, if two funds have precisely the same return, the one with greater variations in its return is given the larger risk score. In each Morningstar Category, the top 10% of funds earn a High Morningstar Return, the next 22.5% Above Average, the middle 35% Average, the next 22.5% Below Average, and the bottom 10% Low. Morningstar Return is measured for up to three time periods (three-, five-, and 10-years). These separate measures are then weighted and averaged to produce an overall measure for the fund. Funds with less than three years of performance history are not rated.

Morningstar Risk (funds
only)

This data point presents the past
downside risk a fund has exhibited relative to other
offerings in its category, as evidenced by its monthly
returns. In each Morningstar category, the 10% of funds
with the lowest measured risk are described as low
risk, the next 22.5% as below average, the middle 35%
as average, the next 22.5% as above average, and the
top 10% as high. Morningstar Risk is measured for up
to three time periods (three, five, and 10 years).
These separate measures are then weighted and averaged
to produce an overall measure for the fund. Funds with
less than three years of performance history are not
rated.

Morningstar Stewardship Grade

Morningstar Stewardship Grade for Stocks

Morningstar stock analysts assign a Stewardship Grade to each of the companies in Morningstar's coverage universe. We evaluate the demonstrated commitment to shareholders of each company's board and management team. Our assessment is divided into three general areas:

• Shareholder Friendliness. This category assesses the power of shareholders relative to management, evaluates the firm's share-class structure and assignment of CEO and board chair roles, and notes the existence of any takeover defenses or related-party transactions.

Morningstar stock analysts base the Stewardship Grades on public filings, previous management actions, conversations with company officials, and their own expertise.

We assign the grades on an absolute scale--not on a curve or on an industry-peer basis. Therefore, if a company engages in practices that the Morningstar analysts think do not reflect good stewardship of investors' capital, it will receive a poor grade regardless of how other firms may have scored.

For a small number of companies we cover, sufficient data to assign a complete grade was unavailable. These firms will receive a designation of "NA," indicating that the rating is not applicable.

Morningstar Stewardship Grade for Funds

Morningstar's Stewardship Grade for funds goes beyond the usual analysis of strategy, risk, and return. The Stewardship Grade allows investors and advisors to assess funds based on factors that we believe influence the following:

• The manner in which funds are run;
• The degree to which the management company's and fund board's interests are aligned with fund shareholders;
• The degree to which shareholders can expect their interests to be protected from potentially conflicting interests of the management company.

We assign each fund a letter grade from A (best) to F (worst). Funds are graded on an absolute basis. There is no "curve." Morningstar analysts' evaluation of five factors determine the grade for each fund:

Morningstar's Stewardship Grade for funds is entirely different from the Morningstar Rating for funds, commonly known as the star rating. There is no relationship between the two.

My Notes on Holding

Click the image to view and edit
your notes about each holding.

Name

This is the name of the security.

Net
Income Growth (%)

Time Periods: 1 Year, 3 Year

Net income growth represents the annualized growth
rate in a companys net income. The one-year
growth rate is calculated from the second fiscal
year (FY2) to the most recently completed fiscal
year (FY1); the three-year growth rate is calculated
from the fourth fiscal year (FY4) to the most recently
completed fiscal year (FY1). Net income growth shows
how rapidly a company has been able to boost its bottom
line. Growth investors might look for companies
with net income growth of, say, 20% or more. If net
income growth shows NMF, it means the company lost
money in one of the years used in the growth-rate
calculation, rendering any growth rate calculated
meaningless. (NMF stands for no meaningful figure.)

Net Margin (%)  Trailing
12 Months

Net margin is a measure of profitability.
It is equal to annual net income over the trailing
12 months divided by revenues during the same time
period. The resulting figure is then multiplied by
100 to put it in percentage form. This figure gives
a more accurate picture of a companys recent
performance than the most-recent annual net margin
figure, which may be more than a year old.

News Link

The news icon links to stories
from Morningstar, Dow Jones, and Reuters, and press
releases from BusinessWire and PR Newswire about holdings
in your portfolio. Investors should use some caution
in reading press releases, as they may not be written
by objective sources.

Number of Estimates
for Next Years EPS Estimate (stocks only)

Number of estimates for next years
EPS estimate is the number of analysts polled to determine
the mean EPS for next year. By looking at this figure,
you can see how much attention the company gets from
the analyst community. Typically estimates generated
by larger numbers of analysts tend to be more stable
than those generated by just a handful of analysts.

Number of Estimates
for This Years EPS Est (stocks only)

Number of estimates for this years
EPS estimate is the number of analysts polled to determine
the mean EPS estimate for this year. By looking at
this figure, you can see how much attention the company
gets from the analyst community. Typically estimates
generated by larger numbers of analysts tend to be
more stable than those generated by just a handful
of analysts.

Number of Funds Owning
(stocks only)

Number of funds owning is the number
of mutual funds that own shares in the company.

Payout Ratio (%)  Trailing
12 Months (stocks only)

Payout ratio is calculated by dividing
dividends declared for the past 12 months by net income
for the same period of time.

PEG Payback Years
(stocks only)

PEG payback years is the number
of years it would take for a companys cumulative
earnings (beginning at a base level of $1) to equal
the stocks current P/E ratio, assuming that the
company continues to increase its annual earnings at
five-year estimated EPS growth rate that analysts project.
A PEG payback period of six years, for example, means
that it would take six years for an investor to recoup
the price paid now for $1 of corporate earnings (the
P/E ratio). Equivalently, the PEG payback period is
the number of years it would take for the cumulative
earnings of a company to equal the current price of
the stock. In other words, the PEG payback period is
the amount of time it would take for the company to earn its
stock price. The higher PEG payback, the longer the
company will take to earn the equivalent of its stock
price. A high PEG payback may indicate a stock will
fail to generate sufficient earnings to support its
current valuation.

PEG Ratio (stocks
only)

The PEG ratio is a stocks
forward P/E divided by the companys five-year
projected EPS growth. The forward price/earnings ratio
used in the numerator of this ratio is calculated by
taking the current share price and dividing by the
mean EPS estimate for the current fiscal year. The
denominator is the average estimate of long-term EPS
growth, derived from polled analysts.

Percent Owned by Mutual
Funds (stocks only)

Percent owned by mutual funds is
the percentage of a companys common shares that
are owned by mutual funds. It is derived by dividing
the aggregate number of company shares owned by mutual
funds by the total shares outstanding (and multiplying
by 100 to convert the result to percentage form). A
high percent fund ownership figure can be an indicator
that a stock is popular among mutual fund managers.
Conversely, a low percent fund ownership figure can
indicate that the stock has been overlooked or is unpopular
among fund managers.

Portfolio Weight (%)

This is the percentage of assets
the holding occupies in the portfolio.

Potential Capital
Gains Exposure (funds only)

Potential capital gains exposure
is the percent of a funds total assets that represent
unrealized capital gains. This is the percentage of
the funds assets that would be subject to taxation
if the fund were liquidated. Where a negative number
appears, the fund has reported losses on its books.
This information (realized and unrealized appreciation)
is taken from the funds annual report. Although
funds rarely liquidate their entire portfolio, a fund
with a higher potential capital gains exposure may
be more likely to realize large capital gains as a
result of a manager change or strategy shift. A high
capital gains exposure often accompanies a low turnover
strategy, wherein a fund holds stocks over the long
term, allowing profits to accumulate.

Previous Close ($)

Previous close is the official
price of the stock or fund at the market close on the
previous trading day.

Price/Book

Time Periods: Current, 5-Year Average

Price/book (P/B) is a stocks most recent price
divided by its most recent book value per share.
By comparing the current price/book ratio with its
five-year average P/B ratio, you can quickly see
if the company is currently valued higher or lower
than it has been historically.

Price/Cash
Flow

Time Periods: Current, 3-Year Average

Price/cash flow is a stocks most recent price
divided by its cash-flow per share during the most
recent fiscal year. For international stocks, price/cash
flow can be a more meaningful figure than price/earnings.
Because earnings are calculated in a variety of ways
worldwide, price/cash flow minimizes accounting differences
and provides a more consistent standard of valuation.

Price/Earnings
- Trailing (stocks only)

Time Periods: Current, 5-Year Average

Current P/E is a stocks current price divided
by the companys trailing 12-month earnings
per share. By looking at the five-year average P/E
alongside the current P/E, you can quickly tell whether
a company is currently valued above or below its
average P/E.

Price/Earnings - Forward

Stocks:
A stocks price/earnings is its current market price divided by
consensus expectations for EPS from continuing operations for next year.
Elsewhere, it is sometimes referred to as price/forward earnings. In
any case, P/E is the multiple of earnings a buyer pays for a stock. Lower
P/Es are generally desirable but must be weighed against the quality
of the earnings and a companys future prospects.

Funds:
A funds price/earnings is the inverse of the earnings yield figure
calculated and used in determining equity style-box placement. It is
very similar to an average of the price/earnings of the stocks a mutual
fund holds, except that instead of aggregating P/Es, the numbers are
inverted to E/Ps prior to aggregation. Also, when analyst expectations
are lacking for next years EPS from continuing operations for individual
stocks, these are projected using historic growth rates. Lower P/Es are
generally desirable but must be weighed against the quality of the earnings
and a companys future prospects.

Price/Sales

Time Periods: Current, 5-Year Average

Price/sales is a stocks current price divided
by its sales per share over the trailing 12 months.
By comparing the current price/sales with its 5-Yr
Average P/S, you can quickly tell whether a company
is currently valued above or below its historical
average P/S ratio. Because the denominator of P/S,
sales, tends to be fairly steady, P/S is usually
a less volatile price multiple than either P/E or
P/B. Thus it can be an especially useful valuation
measure for cyclicals or other companies with volatile
earnings.

Price Change ($)

This is the difference, in dollars,
between a stocks current price and its price
as of market close on the prior trading day. For mutual
funds, it represents the difference between the NAV
of the fund as of the market close on the prior trading
day and its NAV as of the market close two trading
days ago.

Price Change (%)

This is the change, as a percentage,
between a stocks current price and its price
as of the market close on the prior trading day. For
mutual funds, it represents the difference between
the NAV of the fund as of the market close on the prior
trading day and its NAV as of the market close two
trading days ago. The formula used to calculate the
percent change is: 100* [(current price - previous
price)/previous price].

Profitability Grade
(stocks only)

The profitability grade shows how
well a companys profitability, as measured by
its return on assets, compares with its sector. It
measures not only raw profitability, but also whether
a companys ROA is consistent and improving. The
profitability grade encapsulates the most important
information about profitability into a single rating,
which allows easy comparisons between companies.

Projected EPS Growth - 5 Year

For a stock, projected five-year EPS growth is the mean estimate of long-term EPS growth, derived from estimates by analysts who cover the stock. The five-year earnings growth forecast shows what the consensus is among analysts concerning the company's long-term growth rate.

For a mutual fund (and other managed products), projected five-year earnings growth is one of the 10 factors that determine which section of the equity style box a fund falls into. It is essentially a weighted average of the five-year EPS growth estimates of each fund's stock holdings, though there are some refinements made in aggregating the underlying numbers.

Projected EPS Growth
(This Year Est / Last Year) (stocks only)

Projected EPS growth is the mean
estimate for this years EPS divided by the actually
EPS generated during the last fiscal year. The number
is presented as a percentage and reflects anticipated
growth or decline in EPS. If the quotient for a company
is 10%, for example, then analysts expect to see a
10% growth in EPS this year.

Projected EPS Growth
Next Year (stocks only)

Projected EPS growth for next year
is the mean estimate for next years EPS divided
by the mean estimate for this years EPS. The
number is presented as a percentage and reflects anticipated
growth or decline in EPS. If the quotient for a company
is 10%, for example, then analysts expect to see a
10% growth in EPS next year.

Relative
Strength vs. S&P 500 (stocks only)

Time Periods: 1 Month, 3 Month, 1 Year, 3 Year

The relative-strength statistic measures the price
return of a stock versus the price return of the
S&P 500 index for the designated time period. The
higher the relative-strength figure, the better the
stock has performed versus the index. A negative
number indicates that the stock has underperformed
the index. The actual number is calculated based
on comparing how an investor would have done if he
or she had invested $1,000 in the stock and $1,000
in the index. If an investor buys $1,000 worth of
the stock and the index at the beginning of the period,
and the stock returns 20% and the index returns 10%,
the ending values are $1,200 for the stock and $1,100
for the index. We then divide the ending value of
the stock investment by the ending value of the index
investment. In this case: $1,200 divided by $1,100
or 1.09. We then subtract 1 and multiply by 100.
In our example the relative strength would be 9.

Stocks:
Morningstar compares a stocks total return with that of other stocks
in the same industry. A percentile rank of 1 means the stock lands in
the top percentile in terms of total return for that time period (i.e.,
it has performed better than 99% of the stocks with which it is compared).

Funds:
This is the funds total-return percentile rank relative to all
funds that fall into the same Morningstar Category during the time period
measured. The highest (or most favorable) percentile rank is 1 and the
lowest (or least favorable) percentile rank is 100. The top-performing
fund in a category will always receive a rank of 1. Data for 10 Year
and 15 Year are as of the latest month-end.

Stocks:
Morningstar compares a stocks total return with that of the average
of other stocks in the same industry. A positive difference indicates
the stock outperformed its average peer by the indicated percentage,
whereas a negative difference indicates the stock underperformed its
average peer by the indicated percentage.

Funds:
Morningstar compares a funds total return with that of the average
of other funds in the same category. A positive difference indicates
the fund outperformed its average peer by the indicated percentage whereas
a negative difference indicates the fund underperformed its average peer
by the indicated percentage. Data for 10 Year and 15 Year are as of the
latest month-end.

Return on Assets (%)
- Trailing 12 Months

Return on assets is the percentage
a company earns on its assets. The calculation is net
income divided by beginning-of-period total assets.
The resulting figure is then multiplied by 100 to put
it in percentage form. ROA shows how much profit a
company generates on its asset base. The better the
company, the more profit it generates as a percentage
of its assets.

Return on Equity (%)
-- Trailing 12 Months

Return on equity is the percentage
a company earns on its total equity. The calculation
is net income divided by beginning-of-period total
equity. The resulting figure is multiplied by 100 to
put it in percentage form. Return on equity shows how
much profit a company generates on the equity shareholders
have in the company.

Revenue
Growth (%)

Time Periods: 1 Year, 3 Year

Revenue growth represents the percentage growth
in a companys revenue over the trailing time
period. Growth rates over a period of more than one
year are annualized.

Role in Portfolio
(funds only)

Funds are designated as core, supporting
player, or specialty holdings. These roles indicate
the purpose for which a fund is best suited within
a portfolio. Core funds should be the bulk of an investors
portfolio, while supporting players contribute to a
portfolio but are secondary to the core. Specialty
offerings tend to be speculative and should typically
be only a small portion of investors portfolios.

S - Z

SEC Yield (%) (funds
only)

SEC yield is similar to standard
dividend yield, except the SEC mandated methodology
is designed to provide a more accurate yield figure
that is more difficult for fund companies to manipulate.
Unlike standard dividend yield, the SEC yield calculation
is based on income generated during the 30-day period
ending on the last day of the previous month. The resulting
number is annualized so as to reflect the yield an
investor would earn over an entire yield, were that
monthly yield to persist throughout a 12-month period.
SEC yield figures are collected by Morningstar and
often lag by one month.

Shares Held

This is the number of shares you
own of this security. You entered this number (or the
transactions that resulted in this number). Note that
Portfolio Manager automatically adjusts stock prices
to reflect stock splits, but you must manually edit
your portfolio to account for the new number of shares
you own. You must also manually edit your portfolio
to reflect reinvested dividends.

Stock Industry/Fund
Category

Stock industry indicates the primary market in which
a company competes. Industries are more refined than
stock sectors and are designed to describe more accurately
exactly what a companys business is. See stock
sector for more information.

Fund category indicates the type of securities
a fund holds or the segment of the market it focuses
on. Morningstar fund categories are assigned based
on the underlying securities in each portfolio. We
place funds in a given category based on their portfolio
statistics and compositions over the past three years.
If the fund is new and has no portfolio history,
we estimate where it will fall before giving it a
more permanent category assignment. When necessary,
we change category assignments based on recent changes
to the portfolio.

Domestic-Stock Funds
Funds with at least 70% of assets in domestic
stocks are categorized based on the style and size of the stocks they
typically own. The style and size divisions reflect those used in the
Morningstar investment style box: value, blend, or growth style, and
small, medium, or large median market capitalization. See Equity Style
Box for more details on style methodology.

Based on their investment style over the past three
years, domestic-stock funds are placed in one of
the nine categories: large growth, large blend, large
value, mid-growth, mid-blend, mid-value, small growth,
small blend, or small value. Domestic-equity funds
that specialize in a particular sector of the market
are placed in a specialty category: communications,
financials, health care, natural resources, precious
metals, real estate, technology, or utilities.

We also have domestic-stock categories covering:

Conservative Allocation
Conservative allocation funds invest in both
stocks and bonds and maintain a relatively small position in stocks.
These funds typically have 20% to 50% of assets in stocks and 50% to
80% of assets in bonds and cash.

Moderate Allocation
Moderate allocation funds invest in both stocks
and bonds and maintain a relatively large position in stocks. These
funds typically have 50% to 70% of assets in stocks and the remainder
in bonds and cash.

Bear Market
Bear-market funds use short positions and/or
derivatives in order to profit from stocks that drop in price. Because
these funds have extensive holdings in shorts or puts, their returns
generally move in the opposite direction of the benchmark index.

International-Stock Funds
Stock funds that have invested 40% or more of
their equity holdings in foreign stocks (on average over the past three
years) are placed in one of the following international-stock categories:
Europe, Japan, Latin America, diversified Pacific/Asia, Pacific/Asia
ex-Japan, or diversified emerging markets. There are also the following
categories:

Foreign Large Value
These funds seek capital appreciation by investing
in large international stocks that are value-oriented. Large-cap foreign
stocks have market capitalizations greater than $5 billion. Value is
defined based on low price-to-book and price-to-cash flow ratios, relative
to the MSCI EAFE index. These funds typically will have less than 20%
of assets invested in U.S. stocks.

Foreign Large Blend
These funds seek capital appreciation by investing
in a variety of large international stocks. Large-cap foreign stocks
have market capitalizations greater than $5 billion. The blend style
is assigned to funds where neither growth nor value characteristics
predominate. These funds typically will have less than 20% of assets
invested in U.S. stocks.

Foreign Large Growth
These funds seek capital appreciation by investing
in large international stocks that are growth-oriented. Large-cap foreign
stocks have market capitalizations greater than 5 billion. Growth is
defined based on high price-to-book and price-to-cash flow ratios,
relative to the MSCI EAFE index. These funds typically will have less
than 20% of assets invested in U.S. stocks.

Foreign Small/Mid Value
These funds seek capital appreciation by investing
in small- and mid-sized international stocks that are value-oriented.
Small-and mid-cap stocks have market capitalizations less than $5 billion.
Value is defined based on low price-to-book and price-to-cash flow
ratios, relative to the MSCI EAFE index. These funds typically will
have less than 20% of assets invested in U.S. stocks.

Foreign Small/Mid Growth
These funds seek capital appreciation by investing
in small- and mid-sized international stocks that are growth-oriented.
Small-and mid-cap stocks have market capitalizations less than $5 billion.
Growth is defined based on high price-to-book and price-to-cash flow
ratios, relative to the MSCI EAFE index. These funds typically will
have less than 20% of assets invested in U.S. stocks.

World
World-stock funds have 20% to 60% of stocks invested
in the United States.

World Allocation
World-allocation funds have both foreign stocks
and domestic (and often foreign) bonds.

Bond Funds
Bond funds are divided into two main groups:
taxable bond and municipal bond.

Taxable-Bond Funds
Taxable-bond funds fall into the following primary
categories:

The following are additional, less-common types
of taxable-bond funds:

Ultrashort Bond
Ultrashort bonds take on very little interest-rate
risk. To qualify for inclusion in this category, a fund must have an
average duration or an average effective maturity of less than one
year.

Bank Loan
Bank-loan funds invest primarily in floating-rate
bank loans instead of bonds. In exchange for the extra credit risk
they carry, these investments offer high interest payments that typically
float above a common short-term benchmark.

World Bond
World-bond funds invest at least 40% of assets
in foreign-market bonds.

Emerging-Markets Bond
These funds invest at least 65% of assets in
emerging-markets bonds.

Multisector Bond
This category includes funds that diversify their
assets among several fixed-income sectors, usually U.S. government
obligations, foreign bonds, and high-yield domestic-debt securities.

Municipal-Bond Funds
Municipal-bond funds, broadly speaking, either
focus on bonds from a single state, in which case their income is exempt
from both state and federal taxes, or invest in whichever states offer
the most attractive opportunities. The latter are considered Muni-National
funds and are divided into the following categories:

Municipal National Long-Term
Municipal National Intermediate-Term
High-Yield Municipal
Municipal National Short

State-Specific Munis
Muni funds that focus on a single state are placed
in one of the following categories:

Muni funds that dont focus on these states
belong to either Muni Single State Int/Short or Muni
Single State Long.

Municipal funds that invest predominantly in riskier
high-yield debt are put into the High-Yield Muni
category regardless of whether they are single state
or national.

Stock Sector (stocks
only)

Morningstar divides the stock market into three
broad super sectors (see Stock Super Sector entry),
each of which contains four specific industry sectors.
Sectors are based on what companies actually do.
That is, unlike some other sector classification
systems, sectors aren't based on the expected behavior
of the stocks of these companies. The sectors are
as follows:

Software
Companies engaged in the design and marketing
of computer operating systems and applications. Examples include Microsoft,
Oracle, and Siebel Systems.

Industrial Materials
Includes aerospace and defense firms, and companies
that provide or manufacture chemicals, machinery, building materials,
and commodities. Examples include Boeing, DuPont, and Alcoa.

Energy
Companies that produce or refine oil and gas,
oil field service and equipment companies, and pipeline operators.
Examples include ExxonMobil, Schlumberger, and BP Amoco.

Morningstar divides stocks into
three super sectors: information economy,
service economy, and manufacturing economy. The information
economy, which made up 21% of the U.S. market as of
May 31, 2002, includes the telecommunications, software,
hardware, and media sectors. The service economy, totaling
50% of the U.S. market, captures four sectors: health
care, consumer services, business services, and financial
services. The manufacturing economy, at 29% of the
U.S. market, includes consumer goods, industrial materials,
energy, and utilities. Since sectors can vary greatly
in their characteristics, comparing a stock with its
sector rather than the market as a whole is generally
a better way of putting it in the proper context.

Stock Type (stocks only)

Morningstar divides most stocks into eight type
designations: distressed, hard asset, cyclical, speculative
growth, aggressive growth, classic growth, slow growth,
and high yield. Each designation defines a broad
category of stocks by investment characteristics.
Stocks are assigned to a type based on objective
financial criteria according to a proprietary Morningstar
algorithm, so stocks of the same type have similar
economic fundamentals. Every stock has individual
idiosyncrasies, but in general, when evaluating investments,
many of the same concerns and evaluation methods
will apply across the stocks in one type.

One benefit of stock types is that they help you
quickly determine the diversification level of your
portfolio. For instance, you might discover that
most of your holdings are categorized as speculative
growth. If you want to lessen the portfolios
risk, you could invest in other types of stocks.

You may notice that some stocks in our database
do not have stock types. This is because they do
not meet the criteria needed to fit into any of the
stock type categories.

Detailed descriptions of the different stock types
follow:

Distressed
These companies are having serious operating
problems. This could mean declining cash flow, negative earnings, high
debt, or some combination of these. Such turnaround stocks
tend to be highly risky but are sometimes intriguing investments.

Hard Asset
These companies main business revolves around the ownership or
exploitation of hard assets such as real estate, metals, timber, etc.
Such companies typically sport a low correlation with the overall stock
market, and investors sometimes look to them as a hedge against inflation.

Cyclical
Cyclical companies core business can be expected to fluctuate in
line with the overall economy. In a booming economy such companies will
look excellent; in a recession, their growth often stalls and they might
even lose money.

Speculative Growth
Dont expect consistency from speculative-growth companies. Their
profits are at best spotty. At worst they lose money. In fact, many companies
never make it beyond speculative growth, going instead to bankruptcy
court. Thats why theyre speculative. But current profitability
isnt what makes speculative-growth companies interestingits
their prospects for future profits. Hopefully, a speculative-growth company
will eventually blossom into a world-class firm.

Aggressive Growth
Aggressive-growth companies show a bit more maturity
than their speculative-growth counterparts: They post rapid growth
in profits, not just in salesa sign of more staying power. At
this point, its time to make some money.

Classic Growth
These firms are in their prime and have little
left to prove. The best classic growers have blossomed into money machines,
churning out steady growth, high returns on capital, positive free
cash flows, and rising dividends. The catch is, their growth is nowhere
near that of the aggressive-growth group.

Slow Growth and High Yield
The growth of these companies is a fading memory.
Having run out of attractive investment opportunities, most of them
pay out the bulk of their earnings in dividends rather than plow the
profits back into their businesses.

While there may be an aging process for companies,
theres not one for stocks. Investors such as
Warren Buffet have focused on finding great stocks
in and around the classic-growth categorycompanies
such as Coca-Cola and American Express. Peter Lynch
was more eclectic, investing in everything from speculative
growthDunkin Donuts and Pep Boysto
slow growthDaimlerChrysler. Most of us would
want a smattering of companies from across the spectrum.
By putting each company in context and paying special
attention to how it measures up against others in
its age bracket, we can do just that.

Sustainable Growth
Rate (stocks only)

Sustainable growth rate is the approximate
rate at which a company could grow using internally
generated cash without issuing additional debt or equity.
For example, if a companys sustainable growth
rate is 12%, it should be able to boost future earnings
at a rate of up to 12% per year without having to raise
new cash through financing. Sustainable Growth Rate
indicates how fast a company can grow given its current
profitability, dividend policy, and debt levels. The
sustainable growth rate equation accounts only for
growth the company can fund from internally generated
resources. It doesnt account for growth the company
may fund from increasing debt levels or issuing additional
equity.

Tax
Cost Ratio (funds only)

Time Periods: 3 Year, 5 Year, 10 Year, 15 Year

This represents the percentage-point reduction in
an annualized return that results from income taxes.
The calculation assumes investors pay the maximum
federal rate on capital gains and ordinary income.
For example, if a fund made short-term capital-gains
and income distributions that averaged 10% of its
NAV over the past three years, an investor in the
35% tax bracket would have a tax cost ratio of 3.5
percentage points. (The 35% tax rate was used for
illustrative purposes because, according to current
tax law, the maximum income-tax rate will fall to
that level. However, our tax-cost calculation uses
the maximum income-tax rate that applied during the
year in which the distribution was made.)

Ticker

This symbol represents a fund's
or a company's stock on an exchange. The ticker can
be the most dependable way to identify a security,
because it is less likely to change than a security
name. Ticker symbols for companies listed on the NYSE
or AMEX are up to three letters long. Companies traded
on the Nasdaq National Market or Nasdaq Small-Cap exchanges
commonly consist of four to five letters. Tickers for
multiple share classes of stocks are denoted with a
period followed by the share class letter. For example,
the ticker symbol for the A shares of j.M. Smucker
is SMJ.A.

Todays High
($) (stocks only)

The highest price reached during
the course of the day.

Todays Low ($)
(stocks only)

The lowest price reached during
the course of the day.

Total Cost of Position
($)

Total cost is calculated by multiplying
the cost per share by the total number of shares. It
represents what you paid for all of the shares you
currently hold. Note that commissions are added to
costs.

Total Number of Holdings

Total number of holdings is the
number of securities in a mutual funds portfolio.
The lower this figure, the more concentrated a fund
is in a few companies or issues, and the more it is
susceptible to market fluctuations in these few holdings prices.
This figure also provides a context for the importance
of % assets in top 10 holdings. The figure is calculated
from the most recently available fund holdings and
does not include short positions.

Stocks:
Trailing returns represent shareholders gain or loss from a stock
over a given period of time. Returns include both capital gains and losses
(the increase or decrease in the stock price) and income (in the form
of dividend payments). They are calculated by taking the change in the
stocks price, reinvesting all dividends, dividing by the initial
stock price, and expressing the result as a percentage. Returns for periods
longer than one year are annualized.

Funds:
All references to total return represent a fund's
gains over a specified period of time. Total return includes both income
(in the form of dividends or interest payments) and capital gains or
losses (the increase or decrease in the value of a security). Morningstar
calculates total return by taking the change in a fund's NAV, assuming
the reinvestment of all income and capital gains distributions (on
the actual reinvestment date used by the fund) during the period, and
then dividing by the initial NAV. Data for 10 Year and 15 Year are
as of the latest month-end.

Turnover
Ratio (funds only)

Turnover ratio is a measure of the
funds trading activity. It is computed by taking
the lesser of the value of all purchases or sales (excluding
all securities with maturities of less than one year)
and dividing by average monthly net assets. In practical
terms, the resulting percentage loosely represents
the percentage of the portfolios holdings that
have changed over the past year. A low turnover figure
(20% to 30%) indicates a buy-and-hold strategy. High
turnover (more than 100%) would indicate an investment
strategy involving considerable buying and selling
of securities.